The Effectiveness of Budget Simulation Training in Improving Budget Preparation and Control Capabilities in MSMEs: The Role of Management Accounting Mediation

Henny Andriyani Wirananda; Sri Fitria Jayusman; Wilda Sri Munawaroh  Harahap; Wan Dian Safina

doi:10.58524/smartsociety.v6i1.1139

Authors

Henny Andriyani Wirananda Universitas Muslim Nusantara Al-Washliyah, Indonesia
Sri Fitria Jayusman Universitas Muslim Nusantara Al-Washliyah, Indonesia
Wilda Sri Munawaroh Harahap Universitas Muslim Nusantara Al-Washliyah, Indonesia
Wan Dian Safina Universitas Muslim Nusantara Al-Washliyah, Indonesia

DOI:

https://doi.org/10.58524/smartsociety.v6i1.1139

Keywords:

Budget Simulation Training, Budgeting Skills, Accounting, MSMEs, Mediation, Management Accounting

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in economic development; however, many experience high failure rates due to weak financial management capabilities, particularly in budgeting and financial control. Limited understanding of systematic budgeting and the lack of practical financial training often prevent MSME actors from effectively planning and monitoring their financial resources. Strengthening budgeting competencies through structured training interventions is therefore essential to improve the financial sustainability of MSMEs. This study aims to examine the effectiveness of budget simulation training in improving budget preparation and control capabilities among MSME actors, while considering the mediating role of management accounting practices. This study employed a quantitative approach using a one-group pretest–posttest quasi-experimental design. The sample consisted of 112 MSME actors selected through purposive sampling. Data were collected using questionnaires administered twice, namely before the training and four weeks after the intervention. Data analysis was conducted using paired sample t-tests and Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4.0. The results show that budget simulation training has a positive and significant effect on budgeting skills (β = 0.347) and management accounting practices (β = 0.642). Management accounting practices also significantly influence budgeting skills (β = 0.468). Furthermore, management accounting practices partially mediate the relationship between training and budgeting skills, with a variance accounted for of 46.4%. These findings suggest that MSME capacity-building programs should integrate simulation-based budgeting training with guidance on the implementation of management accounting systems. This study contributes by integrating Experiential Learning Theory, Contingency Theory, and the Resource-Based View into a unified framework and empirically testing the mediating role of management accounting practices in MSME budgeting training in Indonesia.

References

Adu-Gyamfi, M., & Chipwere, K. Y. W. (2023). The impact of management accounting services on financial performance of SMEs in Ghana: The moderating role of information technology. Cogent Business & Management, 10(2), 1–18. https://doi.org/10.1080/23311975.2023.2234564

Azhar, Z., & Syarif, R. (2025). Budgeting for small business: A study literature review. Jurnal Ilmiah Akuntansi Kesatuan, 13(1), 169–182. https://doi.org/10.37641/jiakes.v13i1.2686

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2–3), 127–168. https://doi.org/10.1016/S0361-3682(01)00027-7

Corporation, I. F. (2025). MSME finance gap: Assessment of the shortfalls and opportunities in financing micro, small, and medium enterprises in emerging markets. In MSME Finance Gap. https://doi.org/10.1596/28881

Daniels, M., O’Brien, M. P., Costin, Y., & Slattery, D. M. (2025). Global perspectives, local Impact: Facilitating responsible management learning outcomes through international experiential learning. International Journal of Management Education, 23(3), 101243. https://doi.org/10.1016/j.ijme.2025.101243

Dasanayaka, C. H., Murphy, D. F., Nagirikandalage, P., & Abeykoon, C. (2021). The application of management accounting practices towards the sustainable development of family businesses: A critical review. Cleaner Environmental Systems, 3(June), 100064. https://doi.org/10.1016/j.cesys.2021.100064

Evinita, L. L., Tangkau, J. E. M., Pesak, P. J., & Cahyono, S. (2025). Policy Framework to Improve MSME Competitiveness and Financial Performance with Indonesia’s Asta Cita Vision Goals. Journal of Risk and Financial Management, 18(12), 1–25. https://doi.org/10.3390/jrfm18120692

Farran, I. H. (2023). Risk Analysis and Capital Budgeting usage in Small and Medium-sized Enterprises in Lebanon (Issue September). University of Nicosia.

Geerts, J. M. (2024). Maximizing the Impact and ROI of Leadership Development: A Theory- and Evidence-Informed Framework. Behavioral Sciences, 14(10). https://doi.org/10.3390/bs14100955

Gyamera, E., Abayaawien Atuilik, W., Eklemet, I., Henry Matey, A., Tetteh, L. A., & Kwasi Apreku-Djan, P. (2023). An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology. Cogent Business & Management, 10(1). https://doi.org/10.1080/23311975.2023.2183559

Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications.

Hossan, D., Dato’ Mansor, Z., & Jaharuddin, N. S. (2023). Research Population and Sampling in Quantitative Study. International Journal of Business and Technopreneurship (IJBT), 13(3), 209–222. https://doi.org/10.58915/ijbt.v13i3.263

Humaidi, Muawanah, U., & Lisa, O. (2025). Management Accounting Practices In Decision Making In Islamic Boarding Schools. Jurnal Reviu Akuntansi Dan Keuangan, 15(1), 105–123. https://doi.org/10.22219/jrak.v15i1.34498

Kareem, H. M., Alsheikh, A. H., Alsheikh, W. H., & others. (2024). The mediating role of accounting information systems in small and medium enterprise strategies and organizational performance in Iraq. Humanities and Social Sciences Communications, 11, 745. https://doi.org/10.1057/s41599-024-03273-1

Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. Prentice-Hall.

Kotronoulas, G., Miguel, S., Dowling, M., Fernández-Ortega, P., Colomer-Lahiguera, S., Bağçivan, G., Pape, E., Drury, A., Semple, C., Dieperink, K. B., & Papadopoulou, C. (2023). An Overview of the Fundamentals of Data Management, Analysis, and Interpretation in Quantitative Research. Seminars in Oncology Nursing, 39(2), 1–9. https://doi.org/10.1016/j.soncn.2023.151398

Krisnadewi, K. A., Widanaputra, A. A. G. P., & Rasmini, N. K. (2023). Management accounting research: A bibliometric analysis. Management Accounting Research, 58(100812). https://doi.org/https://doi.org/10.1016/j.mar.2022.100812

Labor., U. S. D. of. (2024). Business employment dynamics: Survival of private sector establishments by opening year.

Lin, W., Wang, J.-Y., & Yueh, H.-P. (2022). Learning information ethical decision making with a simulation game. Frontiers in Psychology, 13, 933298. https://doi.org/10.3389/fpsyg.2022.933298

Maharaj, A., & Doorasamy, M. (2024). Financial management challenges and SMME failure in South Africa: A systematic review. South African Journal of Economic and Management Sciences, 27(1), 1–12. https://doi.org/https://doi.org/10.4102/sajems.v27i1.5124

Mahfud, I. (2025). The role of MSMEs (Micro, Small and Medium Enterprises) in improving the national economy. Journal of Economics and Business Letters, 5(5), 13–23. https://doi.org/10.55942/jebl.v5i5.915

Matsoso, M. L., Nyathi, M., & Nakpodia, F. A. (2021). An assessment of budgeting and budgetary controls among small and medium-sized enterprises: Evidence from a developing economy. Journal of Accounting in Emerging Economies, 11(4), 552–577. https://doi.org/10.1108/JAEE-04-2020-0082

Morris, T. H. (2020). Experiential learning: A systematic review and revision of Kolb’s model. Interactive Learning Environments, 28(8), 1064–1077.https://doi.org/10.1080/10494820.2019.1570279

Otley, D. (2016). The contingency theory of management accounting and control: 1980–2014. Management Accounting Research, 31, 45–62. https://doi.org/10.1016/j.mar.2016.02.001

Otoo, I. C. (2024). Financial management practices and SME performance: Evidence from developing economies. Journal of Small Business Management, 62(2), 456–478. https://doi.org/https://doi.org/10.1080/00472778.2023.2245678

Roffia, P., & Dabić, M. (2024). The role of management control and integrated information systems for the resilience of SMEs. Review of Managerial Science, 18, 1353–1375. https://doi.org/10.1007/s11846-023-00657-6

Salas, E., Tannenbaum, S. I., Kraiger, K., & Smith-Jentsch, K. A. (2012). The science of training and development in organizations: What matters in practice. Psychological Science in the Public Interest, 13(2), 74–101. https://doi.org/10.1177/1529100612436661

Saleh, Q. Y., & Al Nimer, M. B. (2022). The mediating role of the management accounting information system in the relationship between innovation strategy and financial performance in the Jordanian industrial companies. Cogent Business & Management, 9(1), 1-28. https://doi.org/10.1080/23311975.2022.2135206

Sylvia, N., Ahmad, N. H., & Ramayah, T. (2020a). Survival and failure of SMEs in Malaysia: A five-year analysis. International Journal of Business and Society, 21(2), 768–785. https://doi.org/https://doi.org/10.33736/ijbs.3282.2020

Sylvia, N., Ahmad, N. H., & Ramayah, T. (2020b). Survival and failure of SMEs in Malaysia: A five-year analysis. International Journal of Business and Society, 21(2), 768–785. https://doi.org/https://doi.org/10.33736/ijbs.3282.2020

Villarroel Henríquez, V., Castillo Rabanal, I., & Santana Abásolo, J. (2025). Applying Kolb’s experiential learning cycle for deep learning: A systematic literature review. Social Sciences and Humanities Open, 12(October). https://doi.org/10.1016/j.ssaho.2025.102096

Wibowo, A., Santoso, B., & Wijaya, R. (2025). MSME survival and failure factors in Indonesia: A five-year longitudinal study. Asia Pacific Journal of Management. Advance Online Publication. https://doi.org/https://doi.org/10.1007/s10490-024-09932-8

Ylä-Kujala, A., Kouhia-Kuusisto, K., Ikäheimonen, T., Laine, T., & Kärri, T. (2023). Management accounting adoption in small businesses: interfaces with challenges and performance. Journal of Accounting and Organizational Change, 19(6), 46–69. https://doi.org/10.1108/JAOC-07-2022-0100

Zhao, X., Lynch, J. G., Jr., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257

Zuhroh, D., Jermias, J., Ratnasari, S. L., Sriyono, Nurjanah, E., & Fahlevi, M. (2025). The impact of sharing economy platforms, management accounting systems, and demographic factors on financial performance: Exploring the role of formal and informal education in MSMEs. Journal of Open Innovation: Technology, Market, and Complexity, 11(1), 100447. https://doi.org/10.1016/j.joitmc.2024.100447